Toronto real estate market stabilized, affordable
The annual Housing Trends and Affordability Report from the Royal Bank of Canada was released at the end of November, showing that home ownership is more affordable across the country and improved for Toronto in the third quarter of 2010.
According to the report, the Toronto-area market has stabilized and is heading towards more sustainable levels of activity.
Toronto RBC Housing Affordability Measures
Affordability is measured by the amount of homeowner income that is spent on homeownership costs every year.
Q3 2010: 47.2%
(Average 48.2% since 1985)
Q3 2010: 56.2%
(Average 53.4% since 1985)
Q3 2010: 31.8%
(Average 31.1% since 1985)
It’s also a great time to invest in a condominium in Toronto, with lower prices than cities like Vancouver ($309,900 vs. $390,400) and an average price increase year over year of 5.6%.
The improvement of the market in early fall was proof that the pending Harmonized Sales Tax earlier this year and the new mortgage rules made Torontonians buy sooner, rather than the decline soon after being a result of a lack of demand. As many have said, anyone buying a home this year already did in the spring.